2.16 Provision, Contingent Liabilities and Contingent Assets

Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a past event and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. When the Company expects some or all of a provision to be reimbursed, for example, under an insurance contract, the reimbursement is recognized as a separate asset, but only when the reimbursement is virtually certain. The expense relating to a provision is presented in the statement of profit and loss net of any reimbursement.

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required

to settle the obligation or reliable estimate of the same is possible. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably.

A contingent asset is not recognised unless it becomes virtually certain that an inflow of economic benefits will arise. When an inflow of economic benefits is probable, contingent asset are disclosed.

Contingent assets and liabilities are reviewed at each balance sheet date.

2.17 Commitments:

Commitments are future liabilities for contractual expenditure. Commitments are classified and disclosed as follows:

• Estimated amount of contracts remaining to be executed on capital account and not provided for,

• Uncalled liability on shares and other investments partly paid,

• Funding related commitment to subsidiary, associate and joint venture companies and,

• Other non-cancellable commitments, if any, to the extent they are considered material and relevant in the opinion of management.

Other commitments related to sales/procurements made in the normal course of business are not disclosed to avoid excessive details.

2.18 Extraordinary and Exceptional Items:

Income or expenses that arise from events or transactions that are clearly distinct from the ordinary activities of the Company are classified as extraordinary items. Specific disclosure of such events/transactions is made in the financial statements. Similarly, any external event beyond the control of the Company, significantly impacting income or expense, is also treated as extraordinary item and disclosed as such.

On certain occasions, the size, type, or incidence of an item of income or expense, pertaining to the ordinary activities of the Company, is such that its disclosure improves an understanding of the performance of the Company. Such income or expense is classified as an exceptional item and accordingly disclosed in the notes to accounts.

2.19 Foreign Currency Transactions:

Foreign currency transactions are recorded on initial recognition in the reporting currency, using the exchange rate at the date of the transaction.

Subsequently, at each Balance Sheet date, foreign currency monetary items are reported using the closing rate, whereas non-monetary items are carried at historical cost, determined using the exchange rate at the date of the transaction.

Exchange differences that arise on settlement of monetary items or on reporting of monetary items at each Balance Sheet date at the closing rate are recognised as income or expense in the period in which they arise.

Nature of Security and terms of repayment:

Car loan taken from Kotak Mahindra Prime Ltd of Rs 26,88,000 is repayable in 36 monthly equal instalments of Rs 81,231 each beginning from 01/02/2022 and ending on 01/01/2025 and is secured against hypothecation of the financed vehicle.

Car loan taken from Punjab National Bank of Rs 16,00,000 is repayable in 36 monthly equal instalments of Rs 50,731 each beginning from 16/08/2023 and ending on 16/07/2026 and is secured against hypothecation of the financed vehicle.

Commercial vehicle loan taken from HDFC Bank of Rs 22,61,757 is repayable in 60 monthly equal instalments of Rs 47,730 each beginning from 05/05/2024 and ending on 05/04/2029 and is secured against hypothecation of the financed vehicle.

Commercial vehicle loan taken from Yes Bank of Rs 14,50,000 is repayable in 48 monthly equal instalments of Rs 35,430 each beginning from 02/06/2021 and ending on 02/05/2025 and is secured against hypothecation of the financed vehicle.

Commercial vehicle loan taken from AU Small Finance bank of Rs 5,00,000 is repayable in 48 monthly equal instalments of Rs 12,684 each beginning from 10/07/2022 and ending on 10/06/2026 and is secured against hypothecation of the financed vehicle.

Commercial vehicle loan taken from HDFC bank of Rs 15,00,000 is repayable in 36 monthly equal instalments of Rs 47,710 each beginning from 05/02/2023 and ending on 05/01/2026 and is secured against hypothecation of the financed vehicle.

Term loan for machinery taken from ICICI Bank of Rs 50,00,000 is repayable in equal principal amount of Rs 83,333 per month starting from May-22 and interest shall be charged at Repo rate Spread per annum plus applicable statutory levy, if any. Last instalment to be paid on or before Nov-26.

Term Loan from ICICI Bank for machinery is secured by way of:

a) Hypothecation of entire stock of raw materials, semi-finished and finished goods, consumables store and spares and such other movables including book debts, bills whether documentary or clean, outstanding monies, receivables fixed assets, both present and future, in a form and manner satisfactory to the bank, charge on fixed assets.

b) Unconditional and irrevocable personal guarantee of directors of the company

c) Equitable mortgage on the following properties owned by the company:

i) 604, Palm Spring Centre, Link Road, Malad (W), Mumbai - 400064

ii) 1804, C wing, Interface Heights, Malad West Mumbai - 400064

iii) Gate no 374,Village Koregaon Bhima, Taluka - Shirur, Dist - Pune- 412216

OTHER ADDITIONAL DISCLOSURES:

a. The Company does not have any benami property, where any proceeding has been initiated or pending against the company for holding any Benami Property.

b. The Company does not have any transactions with companies struck off.

c. The company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period except the charge pending to be created on machinery term loan of Rs 50 lakhs, commercial vehicle of Rs 57.11 lakhs and car loan of Rs 26.88 lakhs.

d. The company have not traded or invest in Crypto currency or Virtual currency during the financial year.

e. The company have not advanced or given loan or invested fund to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

a. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or;

b. provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

f. The company have not received any fund from any person(s) or entity(ies), including foreign entities (Funding party) with the understanding (whether recorded in writing or otherwise) that the company shall:

a. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or;

b. provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

g. The company does not have any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessment under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961)

h. The company has not been declared as Wilful defaulter by the Banks, Financial institution or other lenders.

i. The company has not granted any loans or advances in nature of loans to directors, promoters, KMP's and the Related parties during the year either jointly or severally whether repayable on demand or without specifying any terms or period.

As per our report of even date For and on Behalf of the Board

For R Kejriwal & Co.

Chartered Accountants Murli Manohar Ramshankar Kabra Rajesh Kabra

Managing Director Director

Khushboo Shah DIN: 00178667 DIN: 00178688

Partner M No: 171607 FRN: 133558W

Varsha Amrutlal Shah Shripriya Mishra

Place: Mumbai Chief Financial Officer Company Secretary

Date: May 29, 2024 M. No: A35908